Business owners: Here’s what’s changing for taxes in 2025

Heads up, business owners! From online mail becoming the default method of delivering most business correspondence to changes in short-term rental compliance, the Canada Revenue Agency (CRA) has some big updates for 2025. Don’t let these changes catch you off guard—check out our tax tip to get the full scoop and resources to help you prepare.

2024 tax filing season: time to start using the new CPP/QPP box on the T4 slip

• Box 16A: employee’s Second Additional CPP Contributions (CPP2)
• Box 17A: employee’s Second Additional QPP Contributions (QPP2)

The 2024 tax year is the first year for recording second additional Canada Pension Plan (CPP2) contributions, or in Quebec, second additional Quebec Pension Plan (QPP2) contributions on T4 slips. Fill out Box 16A for any employee who made QPP2 contributions in 2024, or Box 17A for any employee who made QPP2 contributions in 2024.

Boxes 16A and 17A should be left blank when an employee has not made any CPP2, or QPP2, contributions. For more information visit: New Canada Pension Plan (CPP) and Québec Pension Plan (QPP) boxes on the T4 slip - Canada.ca

Temporarily waiving penalties for late filing under the Reporting Rules for Digital Platform Operators

The Reporting Rules for Digital Platform Operators received Royal Assent on June 22, 2023. Under the rules, certain platform operators are now required to collect and report information on sellers considered to be reportable sellers to the CRA.

The first filing deadline for platform operators is January 31, 2025 for the 2024 calendar year. However, the CRA will be waiving penalties and interest for late filing until July 31, 2025. Platform operators are still encouraged to file on time.

If you would like additional details on how to file, a step-by-step process is now available. If you have questions about late filing penalties or the rules in general, you can call the CRA and leave a voicemail. For more information, refer to: Reporting Rules for Digital Platform Operators.

Discover federal tax credits that can help your business save money

Every dollar counts when you’re running a business, and the CRA is here to help. The CRA administers a variety of federal tax credits that are designed to lower your taxable income or the amount of tax that you owe. These tax credits can support your business in many ways, from investing in clean energy to hiring apprentices. No matter your industry, there’s likely a tax credit that fits your needs. Check out our tax tip for a detailed overview of the tax credits available to businesses.

Reminder: The SR&ED Client Portal is now available

In October 2024, the Scientific Research and Experimental Development (SR&ED) program launched the Client Portal for SR&ED claimants in My Business Account. The portal is a one-stop workspace designed to help you start building your SR&ED claim, interact with the CRA, and more.

It features a pre-claim workbook, equipped with tools and resources that allow you to write project descriptions and determine expenditures, so you are better prepared to complete Form T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim. You can also:

• Request assistance from an SR&ED specialist
• Access key information on the SR&ED program and processing times
• Use an updated version of our Self-Assessment and Learning Tool, available exclusively through the Client Portal

Check out the SR&ED Client Portal in My Business Account today!

Trust reporting for the 2024 tax year – Bare trusts not required to file the T3 Return and Schedule 15

The CRA will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust) for the 2024 tax year, unless the CRA makes a direct request for these filings. This is a continuation of the exemption from the trust reporting requirements that was issued for bare trusts for the 2023 tax year.

The new trust reporting requirements still apply to other affected trusts with taxation years ending after December 30, 2023. These affected trusts are required to file a T3 return, including Schedule 15, unless specific conditions are met.